Continental and United form Ã¢â‚¬Ëœmega-carrierÃ¢â‚¬™
Continental and United Airlines have announced plans to merge, the carriers announced Monday, creating the worldÃ¢â‚¬™s largest airline by revenue and the largest combination cargo carrier among passenger airlines in North America.
May 1, 2010
The all-stock deal will form a coast-tocoast American mega-carrier with a leading presence in the top domestic markets, including New York, Chicago and Los Angeles, along with an extended network to Asia, Latin America and Europe.
The airlines plan to complete the deal by end of this year but must still get the blessing of the Justice DepartmentÃ¢â‚¬™s antitrust division. The merger also needs the crucial backing of employee unions, whose opposition to similar moves in the past has scuttled a number of potentialdeals.
The new airline will be named United Airlines, but the aircraft livery, logo and colours will be Continental. The two said they will keep the route structure for both carriers in place, with ContinentalÃ¢â‚¬™s existing hub at Houston as the main hub for the mega-carrier. The two are anticipating cost savings of nearly US$1billion.